TYPE Dividend

Monotype Imaging Holdings, Inc dividend

Although TYPE has a dividend of 0.12 with an ex-dividend date of Dec 31, you can sell covered calls on Monotype Imaging Holdings, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:55 AM ET):

Monotype Imaging Holdings, Inc (TYPE)
Bid Ask Last Change Volume P/E Market Cap
16.94 16.99 16.98 +0.12 59K - 0.0B

TYPE Dividend-Like Income Using Covered Calls

With TYPE at 16.98, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 0.51 0.1
5% 0.85 0.2
10% 1.70 0.5

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On TYPE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 17.50 0.25 33 0.8 0.51 (3.0%)
Feb 15 17.50 0.50 61 0.8 0.51 (3.0%)
5% Yield On TYPE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 17.50 0.25 33 0.8 0.51 (3.0%)
Feb 15 17.50 0.50 61 0.8 0.51 (3.0%)
10% Yield On TYPE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 17.50 0.25 33 0.8 0.51 (3.0%)
Feb 15 17.50 0.50 61 0.8 0.51 (3.0%)

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